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Seth Klarman's Top 5 Second Quarter Holdings

August 14, 2013 | About:
Monica Wolfe

Monica Wolfe

133 followers
Seth Klarman is a value investor and portfolio manager of the investment partnership The Baupost Group. According to his portfolio report released earlier today, the guru now holds 24 stocks valued at over $4 billion.

The following companies represent Seth Klarman’s top five largest holdings in terms of portfolio weight.

Viasat (VSAT)

Klarman’s largest position remains in Viasat where he holds 11,000,000 shares, representing 19.5% of his total portfolio as well as 24.69% of the company’s shares outstanding.

The guru did not alter his holdings in the company during the second quarter. Klarman has held 11,000,000 shares of Viasat since fourth quarter 2012. Klarman’s holding history as of the second quarter:

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The company provides fixed and mobile broadband services, satellite and wireless networks and secure networking systems, products and services.

Viasat’s historical revenue and earnings growth:

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Viasat has a market cap of $3.11 billion. Its shares are currently trading at around $68.31 with a P/S ratio of 2.50 and a P/B ratio of 3.40.

BP PLC (BP)

Klarman’s second largest holding is in BP where he holds 19.3% of his total portfolio. The guru owns 18,597,482 shares of BP, representing 0.58% of the company’s shares outstanding.

During the second quarter Klarman increased his position in the company by 8.59%. The guru bought a total of 1,470,624 shares in the price range of $40.23 to $44.07 per share.

BP PLC provides fuel for transportation, energy for heat and light, lubricants to keep engines moving, and the petrochemicals products used to make everyday items like plastic bottles.

BP’s historical revenue and net income:

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The Peter Lynch Chart shows that BP currently appears to be undervalued:

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BP has a market cap of $130.49 billion. Its shares are currently trading at around $41.34 with a P/E ratio of 5.10, a P/S ratio of 0.30 and a P/B ratio of 1.10. The dividend yield of BP stocks is 5.20%.

Theravance (THRX)

Seth Klarman also holds a significant position in Theravance with 15.8% of his total portfolio in the company. The guru holds 16,538,977 shares of Theravance, representing 16.80% of the company’s shares outstanding.

During the second quarter Klarman upped his stake in the company by 22.02%. The guru bought a total of 2,985,177 shares at an estimated average price of $33.29 per share. The price per share is up 10.6% from this estimated price.

Klarman’s holding history as of the second quarter:

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The Company is a biopharmaceutical company with a pipeline of internally discovered product candidates and strategic collaborations with pharmaceutical. It is focused on the discovery, development and commercialization of small molecule medicines across a number of therapeutic areas including respiratory disease, bacterial infections and gastrointestinal motility dysfunction.

Theravance’s historical revenue and earnings growth:

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Theravance has a market cap of $3.98 billion. Its shares are currently trading at around $37.03 with a P/S ratio of 360.30 and a P/B ratio of 39.80.

Micron Technology (MU)

The guru’s fourth largest holding comes from one of his new buys of the quarter, Micron Technology. The guru holds 41.5 million shares, representing 4.06% of the company’s shares outstanding and 14.8% of his total portfolio.

Klarman bought a total of 41.5 million shares of Micron Technology when the share price averaged $11. The price has since then increased approximately 32.4%.

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The Company is global manufacturer and marketer of semiconductor devices, principally NAND Flash, DRAM and NOR Flash memory.

Micron Technology’s historical revenue and net income:

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Micron Technology has a market cap of $15.47 billion. Its shares are currently trading at around $14.90 with a P/S ratio of 1.80 and a P/B ratio of 2.10. The company had an annual average earnings growth of 21.1% over the past 10 years.

GuruFocus rated Micron Technology the business predictability rank of 2-star.

American International Group (AIG)

Klarman’s fifth largest holding comes from guru-favorite company American International Group. The guru currently holds 10,120,227 shares, representing 0.69% of the company’s shares outstanding and 11.2% of his total portfolio.

During the second quarter Klarman reduced his position by 14.6%. The guru sold a total of 1,729,973 shares in the price range of $37.69 to $46.21 per share. The price has dropped 2.6% from the estimated average price of the second quarter.

AIG is a holding company which, through its subsidiaries, is engaged in a range of insurance and insurance-related activities in the U.S. and abroad. The company's four reportable segments are as follows: General Insurance, Domestic Life Insurance & Retirement Services, Foreign Life Insurance & Retirement Services and Financial Services.

AIG’s historical revenue and net income:

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The Peter Lynch Chart shows that AIG currently appears to be overvalued:

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American International Group has a market cap of $70.92 billion. Its shares are currently trading at around $48.04 with a P/E ratio of 10.60, a P/S ratio of 1.10 and a P/B ratio of 0.70.

Check out Seth Klarman’s second quarter portfolio here.

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Rating: 3.8/5 (5 votes)

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